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a. Compute the per-unit cost for each product. b. Compute the profit for each product.

a. Compute the per-unit cost for each product. b. Compute the profit for each product.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Basco Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow: Basco Boards Shimano Boards Production costs Direct materials Direct labor Allocated overhead. Total units produced and sold Total sales revenue $ 26.00 $ 40.00 $ 32.00 $ 55.00 $ 16.00 6,000 $ 564,000 $ 22.00 10,000 $ 1,400,000 Basco allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $64,000 per quarter, to the two products equally. Required Note: Round your final answers to 2 decimal places. However, do NOT round intermediate calculations (i.e., if an intermediate calculation is used from part a in part b, do not round that calculation used in part b). a. Compute the per-unit cost for each product. b. Compute the profit for each product. Basco Boards Shimano Boards a. Cost per unit b. Profit
Transcribed Image Text:Basco Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow: Basco Boards Shimano Boards Production costs Direct materials Direct labor Allocated overhead. Total units produced and sold Total sales revenue $ 26.00 $ 40.00 $ 32.00 $ 55.00 $ 16.00 6,000 $ 564,000 $ 22.00 10,000 $ 1,400,000 Basco allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $64,000 per quarter, to the two products equally. Required Note: Round your final answers to 2 decimal places. However, do NOT round intermediate calculations (i.e., if an intermediate calculation is used from part a in part b, do not round that calculation used in part b). a. Compute the per-unit cost for each product. b. Compute the profit for each product. Basco Boards Shimano Boards a. Cost per unit b. Profit
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